I am deeply honoured to have received the opportunity to lead a dedicated organisation such as Federal Bank on its course be ‘The Most Admired Bank’. In my first year as the Chairman of Federal Bank, I take great pleasure in presenting the Annual Report for the fiscal year 2022-23.

Allow me to emphasise the paramount importance Federal Bank places on the relationships we forge with our esteemed customers and other stakeholders. Driven by an unwavering dedication to serve the nation’s growing population, your Bank has wholeheartedly embraced the global wave of digital transformation, expanding its offerings to meet the demands of an ever-evolving landscape.

Reflecting on the macroeconomic landscape of FY 2022-23, it is evident that the Indian economy has demonstrated resilience and agility in navigating uncharted waters. Despite formidable obstacles such as geopolitical tensions, escalating inflation, and disruptions in supply chains, policymakers demonstrated resolute determination to steer us through these testing times and alleviate their repercussions by maintaining financial stability through prudent measures and effective communication.

Notably, the Indian economy is rebounding strongly and becoming one of the fastest-growing large economies. The conducive economic climate fostered by India has attracted investments from across the globe, underscoring the nation’s appeal as an investment destination. Moreover, the strengthened indigenous capabilities of our nation have diminished reliance on global economic counterparts, further boosting our self-sufficiency.

Ignited by this ‘India Positive’ story, your Bank continues to soar on an upward trajectory, concluding yet another triumphant year. Grounded in the philosophy of ‘Digital at the Fore, Human at the Core,’ your Bank leverages the power of technology, while cherishing the essence of human connections. The relationship campaign ‘Rishta Aap Se Hai, Sirf App Se Nahi^TM’ which was launched recently is demonstrative of the same. The aim is to capture the essence of humanised banking in digital format through the implementation of various digital transformation initiatives, harnessing technologies such as Artificial Intelligence (AI), Machine Learning (ML), and Robotic Process Automation (RPA). Additionally, your Bank’s relentless enhancement of analytical capabilities has played a crucial role in gaining valuable insights into customer behaviour and significant trends. As a result, your Bank could create tailored products and deliver an unparalleled personalised experience to our customers.

As we march ahead with our digital transformation, we have gained further momentum through collaborations with diverse FinTech companies, enabling us to extend our reach to previously underserved segments. This has empowered your Bank to deliver a compelling value proposition and make a meaningful contribution to democratising financial services in the country.

One of our key strategic priorities has been to enhance your Bank’s nationwide presence to capitalise on lucrative opportunities beyond the home state of Kerala. With a primary focus on vibrant regions such as Gujarat, Maharashtra, Tamil Nadu, and Karnataka, we aim to establish 80-100 new branches annually over the next three years. Your Bank’s expansion plans are fuelled by the success of our recent branches, which are achieving break-even status at an accelerated pace.

Charting the Path to Excellence

FY 2022-23 witnessed Federal Bank accomplishing significant milestones in terms of a variety of parameters, including revenue, profitability, asset quality, and shareholder value creation. Your Bank surpassed previous records in terms of deposits, advances, total business, total income, net interest income, other income, operating profit, and net profit, establishing new benchmarks for future endeavours. This exceptional performance can be attributed to customer-centric strategies, effective utilisation of digital capabilities, robust financial management practices, and a prudent risk management culture.

Leading with Vision

Federal Bank is guided by an exceptional leadership team that consistently establishes new benchmarks of excellence for the organisation to emulate. I consider myself fortunate to work alongside some of the most brilliant minds I have ever encountered as they shape a promising future for your Bank.

In the last 5-6 years, we have onboarded some of the most talented people from across the banking system. Their expertise has played a pivotal role in instigating a strategic transformation in the underwriting process. A central component of this strategy revolves around the segregation of loan origination and underwriting processes, which has led to us conducting underwriting through various credit hubs.